Mumbai, Oct. 1: Chicago-based Resource Financial Corporation (RFC) has firmed up plans to set up a private equity fund in India, Indian American Capital Partners (IACAP). IACAP is targeting a fund size of $300 million, which would make it one of India’s largest private equity funds.
Brescon Corporate Advisors Ltd, who is advising RFC on setting up the equity fund, today said that 50 per cent of the fund would be raised in the US, while the balance will be raised from Indian institutions.
According to Russell Stepke, president and principal of RFC, “We will be exploring investment opportunities in large and globally competitive Indian companies to be presented to RFC Partner Funds. We would be keen to find investment opportunities in select industries, including IT, BPO, media, healthcare, pharmaceuticals, auto components, chemicals, power generation and FMCG.”
Brescon is a Mumbai-based investment bank providing financial restructuring, private equity placement, debt syndication and M&A advisory services. It will be responsible for identifying, analysing, structuring and implementing investment opportunities in India.
RFC’s plans for India follow Temasek Holdings (Pvt) Ltd and Standard Chartered Private Equity (SCPE) establishing the Merlion India Fund, a $100-million India-focussed private equity fund. SCPE is an arm of Standard Chartered Bank that invests in equities of private companies. Temasek Holdings is an investment holding company based in Singapore.
The fund has been promoted to provide growth capital to Indian companies that are expanding businesses within the country as well as abroad.